Melbourne

Asian investor gets a 'finger lickin' good deal

​An Asian investor has secured access to the Colonel’s 11 herbs and spices, purchasing KFC Wantirna for $2.585 million representing a net yield of 6.96%.

Stephen Bolton and Stuart Taylor of Jones Lang LaSalle sold this conveniently located KFC at 680 Boronia Road, Wantirna by private treaty.

This secure investment benefits from strong rental returns due to a long initial lease term of 10 years and multiple options to 2045.

The KFC at 680 Boronia Road, Wantirna forms part of an island convenience retail precinct with three street frontages to Boronia Road, Wantirna Road and Mountain Highway, with other operators including Subway and Cold Rock.

The 980 square metre site has been developed with a modern purpose built building providing all the amenities required for the current KFC format, including both ‘dine-in’ and ‘alfresco’ style seating along with a ‘drive-thru’ facility for takeaway and excellent onsite car parking.

Mr Bolton said, “KFC is a globally recognised brand and the second largest fast food restaurant chain in the world which affords this property with strong annual growth and provides the purchaser with a solid, secure return on investment potentially to 2045.

“The sharp yield achieved is considered particularly strong and reflects the strength of the high profile location for this type of property. The sale reinforces the trend of investors seeking security through long initial lease to recognised operators."

Mr Taylor said, “The successful purchaser was from China reinforcing that Asian investors are an extremely active buyer group, attracted by the security and stable growth that Australian Real Estate offers.